Crypto asset supervisor 21shares sees actively managed exchange-traded merchandise as the subsequent part of crypto investing, because the market matures past easy price-tracking funds.
Duncan Moir, president of 21shares, advised Cointelegraph in an unique interview that as a result of crypto is a nascent and rising asset class, it’s significantly properly suited to lively administration.
He mentioned the corporate combines bottom-up analysis on particular person property with quantitative and discretionary top-down methods to handle danger and place portfolios, including that 21shares has been increasing its portfolio administration and buying and selling groups to assist extra refined merchandise.
We’ve needed to rent and construct out the staff with individuals who have completely different buying and selling and portfolio administration experience, however now we’ve got a stable staff and we expect we’ll have the ability to ship robust actively managed merchandise.
Energetic ETFs worldwide held almost $1.8 trillion in property on the finish of 2025, in accordance to knowledge compiled by Morningstar and Goldman Sachs Asset Administration.
Moir added that integration with FalconX, which acquired 21shares in October, is predicted to speed up product improvement, significantly as the corporate expands into extra advanced choices.
Demand for crypto ETPs and ETFs varies by area, Moir advised Cointelegraph. He mentioned:
The curiosity continues to be concentrated within the bigger cash within the US. In Europe, institutional purchasers are extra involved in newer property and the appliance layer past the layer-1s.
He attributed the divergence to a extra mature investor base in Europe, the place establishments that already maintain Bitcoin (BTC) and Ether (ETH) are more and more trying to increase their crypto allocations.
In opposition to that backdrop, 21shares not too long ago launched an exchange-traded product in Europe linked to Technique’s most popular inventory (STRC), providing publicity to a high-yield instrument linked to the corporate’s Bitcoin-focused capital technique.
Moir mentioned the product has seen robust early demand throughout a number of areas, reflecting investor urge for food for yield-generating property which might be simpler to entry by way of conventional brokerage platforms.
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Crypto ETPs evolve past passive publicity
Because the crypto ETP and ETF market matures, issuers are shifting past easy value monitoring, with extra advanced constructions rising throughout the US and Europe.
One space gaining traction is staking, a course of that permits traders to earn yield by locking up crypto property to assist safe blockchain networks. In October, Grayscale launched staking throughout its ETPs, making its Ether funds the primary US-listed spot crypto ETFs to supply staking rewards whereas extending the characteristic to its Solana belief pending ETP approval.
In March, asset supervisor BlackRock launched a Nasdaq-listed Ethereum product that comes with staking, combining spot Ether publicity with yield technology. The fund recorded $15.5 million in buying and selling quantity on its first day.
As new exchange-traded merchandise come to market, Moir mentioned 21shares evaluates potential launches primarily based on three elements: inner analysis, shopper demand and broader market developments, with its analysis staff figuring out early alternatives and institutional suggestions serving to gauge curiosity.
“The third is the place we see developments going sooner or later,” he mentioned, including that this may end up in both area of interest, single-asset merchandise or broader thematic choices relying on conviction.
Moir pointed to the corporate’s Bitcoin-and-gold ETP for instance of that strategy in observe. Whereas not too long ago cross-listed in London, the product has been dwell for 4 years and, he mentioned, has delivered among the strongest risk-adjusted returns amongst European ETPs.
From a portfolio perspective, the mix “simply makes complete sense,” he added, citing its diversification advantages throughout Bitcoin and gold.
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